More homes for rent; more choice for tenants
Here’s a copy of the media release we’ve just sent out:
New statistics released today show the pressure’s coming off tenants in Brisbane’s inner city as the rental housing market finally grows.
According to Bees Nees Research the March quarter saw the supply of accommodation growing strongly, with 338 homes added to the rental pool.
Managing Director Rob Honeycombe says many of these are owners-residents who’ve been unable to sell and have instead rented their property.
“This increase isn’t due to lots of new property been built – construction of new investment properties is still very low. But with some owners unable to sell it’s no surprise those who have to move city for example are often choosing to rent their home”, Mr Honeycombe said.
Mr Honeycombe said the total bonds held by the Residential Tenancies Authority (RTA) for inner city properties had finally risen.
“The increase in the March quarter was the largest since early 2007 and the inner suburbs really needed it. We’ve had an acute undersupply for some time”, Mr Honeycombe said.
“Rents have naturally started to flatten as tenants have more to choose from and across the inner city have actually dropped slightly (a 2bedroom apartment dropped from $430 to $420/week). House rents are similar.”
In the CBD rents were up $10 to $520/week but areas like Kangaroo Point and East Brisbane dropped $40.
Mr Honeycombe says the lower stockmarket and superannuation returns may also be helping tenants. “We have a client who recently chose to rent spare bedrooms in her own home to provide a new income stream. Her investments aren’t providing a high enough return. We expect there’s many more stories like this out there.”
“With the flurry of first home buyers expected to slow after June and without new construction of any volume, we do expect the rental market to tighten once again. For the time being at least there’s more rental homes and that’s a breath of fresh air for tenants.”
If you’d like a suburb by suburb guide to median rents go to www.WhatRentMyHome.com.au for all the latest stats.